Will I get a reduced Social Security payment?
Will I get a reduced Social Security payment?
I'm 61, and plan on drawing Social Security next year. According to my profile on the Social Security web site, they "estimate" my benefit at 1525 dollars per month. But, I haven't worked in the past seven years. Should I expect a smaller payment? If so, how much? Thanks.
Re: Will I get a reduced Social Security payment?
If you haven't had any income the last seven years, your estimated SS benefit should already be taking that into account. Have you checked your earnings record on the SS website to verify that it is correct?
When I retired, my estimated SS benefit dropped over the next couple of years as SS started assuming I wouldn't have any future income. The same thing should have happened to your SS estimates years ago when your income dropped to 0.
When I retired, my estimated SS benefit dropped over the next couple of years as SS started assuming I wouldn't have any future income. The same thing should have happened to your SS estimates years ago when your income dropped to 0.
Re: Will I get a reduced Social Security payment?
Also realize that if the $1525 is your benefit at full retirement age, you benefit at 62 will be about 30% less.
Re: Will I get a reduced Social Security payment?
Once your income dropped to $0 SS assumed that all future income would be $0 so it should be fairly accurate. You will get a bit of a raise due to the recent COLA increase.
The fool, with all his other faults, has this also - he is always getting ready to live. - Seneca Epistles < c. 65AD
-
- Posts: 223
- Joined: Mon Oct 19, 2015 8:55 pm
Re: Will I get a reduced Social Security payment?
If you haven't worked in 7 years your not working was definitely taken into account in the calculation. As a PP has noted, though, you'll still be 5 years before full retirement age at 62, so you need to confirm that that amount is for early retirement and not full.
Re: Will I get a reduced Social Security payment?
If you haven't worked in the past seven years, that will be reflected in your work history, and your estimate will be based on $0 income for future years.mcse37 wrote: ↑Sat Oct 16, 2021 9:53 am I'm 61, and plan on drawing Social Security next year. According to my profile on the Social Security web site, they "estimate" my benefit at 1525 dollars per month. But, I haven't worked in the past seven years. Should I expect a smaller payment? If so, how much? Thanks.
Thus, the estimate should be reasonably accurate, if you are reading it correctly. I assume the estimate in question is the "62 years of age" reduced benefits estimate and not your Full Retirement Age benefits?
Consider consulting with https://opensocialsecurity.com/ before deciding to take a reduced benefit.
This isn't just my wallet. It's an organizer, a memory and an old friend.
Re: Will I get a reduced Social Security payment?
When you look at your account on the SS.gov site it clearly tells you your benefit amount for Early, Full Retirement, and Delayed. In my case (yours too?) those ages are 62,67, and 70.
If the benefit amount you are seeing is at age 62, it should be the amount you can expect.
If the benefit amount you are seeing is at age 62, it should be the amount you can expect.
-
- Posts: 4382
- Joined: Sun Mar 08, 2009 8:01 am
Re: Will I get a reduced Social Security payment?
If you haven't worked in 7 years, presumably you've got other assets and sources of income. If so, consider delaying to increasing your lifetime benefit amount. Can you afford to wait to collect the higher payout at age 67 or 70?mcse37 wrote: ↑Sat Oct 16, 2021 9:53 am I'm 61, and plan on drawing Social Security next year. According to my profile on the Social Security web site, they "estimate" my benefit at 1525 dollars per month. But, I haven't worked in the past seven years. Should I expect a smaller payment? If so, how much? Thanks.
Re: Will I get a reduced Social Security payment?
I've thought about delaying my benefit, but my father only lived to 62 and never saw a penny of social security. I'm going to draw as soon as I can.
- willthrill81
- Posts: 32250
- Joined: Thu Jan 26, 2017 2:17 pm
- Location: USA
- Contact:
Re: Will I get a reduced Social Security payment?
Think twice. Family history only explains about 25% of individuals' longevity. The rest is due to other factors, particularly your own health and behaviors.
If you didn't collect any SS benefits because you died before doing so, you don't have any regrets because you're dead. But if you live to 90 as many are likely to do, you could have a lot of regret for not delaying your SS benefit to make for a much bigger benefit for the rest of your life.
Delaying SS benefits is like buying insurance. You shouldn't do either to try to get rich; you do so to keep from becoming poor.
The Sensible Steward
-
- Posts: 4382
- Joined: Sun Mar 08, 2009 8:01 am
Re: Will I get a reduced Social Security payment?
That's a fair point if you have reason to expect that your will live a shorter than normal life based on heredity and/or your own personal medical history. But, objectively, it's hard to find a better deal (in fact, impossible) on a lifetime, inflation-indexed annuity. If you have the resources, you can spend more now and forever by delaying until 70. Here's what the math says: viewtopic.php?t=102609
Re: Will I get a reduced Social Security payment?
If you paid into Social Security for 35 years with earnings at the minimum amount (or more) required for credit each year, then your benefit won’t change much due to being out of the workforce for seven years.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
Re: Will I get a reduced Social Security payment?
Avg life expectancy now for a 62 yo is 20-24 years. If you estimate yourself as below average in health or have any bad health habits, probably less years than that but if not maybe more. If you have low educational attainment probably less, but if you have a higher educational attainment and good current health probably more. The longevity revolution among educated people is a real phenomenon from what I can see. Taking SS early always felt to me like betting against myself, something that I find distasteful.
- willthrill81
- Posts: 32250
- Joined: Thu Jan 26, 2017 2:17 pm
- Location: USA
- Contact:
Re: Will I get a reduced Social Security payment?
It's very interesting how people are concerned that they will live to 100 when the topic is safe withdrawal rates, but when it comes to SS benefits, people are concerned that they will die at 65.JPM wrote: ↑Sat Oct 16, 2021 3:56 pm Avg life expectancy now for a 62 yo is 20-24 years. If you estimate yourself as below average in health or have any bad health habits, probably less years than that but if not maybe more. If you have low educational attainment probably less, but if you have a higher educational attainment and good current health probably more. The longevity revolution among educated people is a real phenomenon from what I can see. Taking SS early always felt to me like betting against myself, something that I find distasteful.
The Sensible Steward
Re: Will I get a reduced Social Security payment?
If you expect to die at 62, you won't see a penny, either.
62 is the most popular age at which to start benefits. And few people regret their decision no matter when they choose to start.
If you are single, then you of course can start whenever it pleases you, for whatever reason it pleases you, no matter how much in lifetime benefits you are giving up (and https://opensocialsecurity.com/ can estimate how much you are giving up). Your decision impacts only yourself.
If you haven't worked in 7 years, then apparently you can by without these benefits and so financially could afford to delay. But the choice is always in your hands.
This isn't just my wallet. It's an organizer, a memory and an old friend.